Latest news with #Liontrust
Times
12 hours ago
- Business
- Times
Liontrust posts 28% drop in pre-tax profits as investors shun London
The pressure on Britain's active fund management industry has fuelled a sharp fall in profits at Liontrust, which also rattled investors by signalling that it would cut its dividend. Shares in the London-listed asset manager closed down 53½p, or 13 per cent, at 358p after it reported a 28 per cent decline in adjusted pre-tax profits to £48.3 million in the 12 months to the end of March as it was hit by clients continuing to pull their funds. Net outflows totalled £4.9 billion during the period in the third consecutive year of withdrawals by Liontrust customers, knocking the assets overseen by the group to £22.6 billion. Like other fund managers that focus on UK equities, Liontrust has suffered in recent years as investors have shied away from the London stock market in favour of more attractive opportunities elsewhere, particularly in the United States. As an active manager that picks and chooses investments, it has also faced stiff competition from cheaper passive funds that simply track indices.
Reuters
a day ago
- Business
- Reuters
UK wealth manager Liontrust's annual profit drops as $6.7 billion outflows bite
June 25 (Reuters) - British wealth manager Liontrust Asset Management (LIO.L), opens new tab on Wednesday reported a 28.3% fall in annual profit, following a year marked by 4.9 billion pounds ($6.68 billion) of outflows. While U.S. President Donald Trump's barrage of steep tariffs sparked an exodus of investors amid a global market meltdown, some wealth managers struck a cautiously optimistic note and said that volatility resulted in higher trading volumes and clients seeking more financial advice. "We believe it will be more challenging for markets to generate the same level of returns in the next few years as over the past decade," said CEO John Ions. However, Ions said that this environment will likely drive investors towards active asset managers, encourage deeper market engagement and promote more diversified portfolios. Liontrust also introduced a new capital allocation policy, which includes a new dividend policy with a payout ratio of a minimum of 50% of adjusted diluted earnings per share and capital returns to shareholders via buybacks. The company clocked 48.3 million pounds of adjusted pre-tax profit for the year ended March 31, below last year's 67.4 million pounds. ($1 = 0.7341 pounds)
Yahoo
22-05-2025
- Business
- Yahoo
UK's Liontrust Fund Questions Microsoft Prospects While Goldman Remains Bullish
Microsoft Corporation (NASDAQ:MSFT) is past its glory days and unlikely to generate long-term value. That's the sentiment echoed by UK-based Liontrust fund managers on May 19. The sentiments come on shares of the software giant bouncing back after imploding on the waning artificial intelligence-driven run. The stock is up by about 9% year to date, an outperformance cemented by strong financial results and growth in the cloud unit Azure. An investor intently focused on the stock exchange monitor. Amid the outperformance, Storm Uru and Clare Pleydell-Bouverie, co-managers of Liontrust's Innovation Fund, have shed all their holdings in the stock after 6 years of investment. According to the fund manager, Microsoft's Windows operating system, which has been a key growth driver on the software side, is no longer necessary in the age of software 2.0. The fund managers insist that Microsoft, like other tech giants, is increasingly being squeezed by a faster innovation cycle and new artificial intelligence competitors. Additionally, they point to a collapse in product development timelines driven by advances in software automation. Lion Trust fund managers have also questioned whether Microsoft's significant investment in AI powerhouse OpenAI is enough to safeguard its dominance in software. The remarks starkly contrast the Buy rating by Goldman Sachs analysts, who have also hiked their price target to $550 from $480. Goldman Sachs insists the tech giant is well-positioned for robust growth given its investments and advancements in AI. While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
UK's Liontrust Fund Questions Microsoft Prospects While Goldman Remains Bullish
Microsoft Corporation (NASDAQ:MSFT) is past its glory days and unlikely to generate long-term value. That's the sentiment echoed by UK-based Liontrust fund managers on May 19. The sentiments come on shares of the software giant bouncing back after imploding on the waning artificial intelligence-driven run. The stock is up by about 9% year to date, an outperformance cemented by strong financial results and growth in the cloud unit Azure. An investor intently focused on the stock exchange monitor. Amid the outperformance, Storm Uru and Clare Pleydell-Bouverie, co-managers of Liontrust's Innovation Fund, have shed all their holdings in the stock after 6 years of investment. According to the fund manager, Microsoft's Windows operating system, which has been a key growth driver on the software side, is no longer necessary in the age of software 2.0. The fund managers insist that Microsoft, like other tech giants, is increasingly being squeezed by a faster innovation cycle and new artificial intelligence competitors. Additionally, they point to a collapse in product development timelines driven by advances in software automation. Lion Trust fund managers have also questioned whether Microsoft's significant investment in AI powerhouse OpenAI is enough to safeguard its dominance in software. The remarks starkly contrast the Buy rating by Goldman Sachs analysts, who have also hiked their price target to $550 from $480. Goldman Sachs insists the tech giant is well-positioned for robust growth given its investments and advancements in AI. While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
08-05-2025
- Business
- Daily Mail
Urgent change is needed to save AIM, junior stock market from extinction, warn City bosses
Senior City figures have written to the Treasury with a wish-list of urgent and radical reforms to save London's junior stock market from extinction. The letter argues ministers should improve tax breaks for investors to spur firms on the Alternative Investment Market (AIM) to raise new capital. Another idea recommends changes to cash ISA rules, which provide tax relief for savers, to include UK equities in a bid to boost investment in AIM companies. And they urge the London Stock Exchange Group (LSEG), which owns AIM, to change the name in a rebrand that promotes a market that is essential for economic growth and job creation. A fund manager said: 'AIM faces an existential crisis. Urgent change is needed if the market – so important for economic growth – is to survive. It's do or die.' The letter has been co-ordinated by top investors including Octopus, BGF and Liontrust. Many recommendations are based on a recent paper by Simon Brickles, former AIM chief, who argues for a wholesale review, a change of leadership and Government tax breaks so that it recaptures its stature as a hub where young, dynamic companies can flourish. Critics say the LSEG has expanded successfully into the data business, but has been less concerned about the growth of its cash markets, which contributed just 3pc of revenue last year. The call to reform AIM comes at a critical time for the market which celebrates its 30th anniversary in June. Last year there were 679 firms listed, the fewest since 2001. In 2007, 1,694 were listed. The letter has been sent to Emma Reynolds, Economic Secretary to the Treasury, and Varun Chandra, No 10's business adviser. It follows a meeting last month with senior figures in the City to discuss how to improve AIM's performance. Other critics have more audacious plans. One group, led by former fintech boss Jon Prideaux, wants to relaunch it as a global exchange.
